Red Osier has been my preferred arrow material for a number of years now, and it makes awesome arrows!
I cut the shoots in winter and let them sit for a week before removing the bark. After the bark is removed I let them sit for another week before I begin hand-straightening. This is done slowly, a little bit every day, as they dry. You will find that MOST of the straightening can be done at this point, no heat required. When they are straight, and will stay that way, they can be bundled and put away for seasoning. I allow mine to season for a year. Once they are fully seasoned I reduce them to the desired diameter and do some final heat-straightening.
My preferred tools for reducing the shafts are a hand plane and a cabinet scraper. I recently began experimenting with a dowling jig from Lee Valley Tools which is proving to be very useful.
Jason